SALVAGE & GENERAL AVG

	SALVAGE	TOWAGE
1	SALVAGE IS VOLUNTARY RENDERED TO MARITIME PROPERTY.	TOWAGE IS A SERVICE BY PREARRANGED CONTRACT PROVIDED TO MARITIME PROPERTY.
2	SALVAGE SERVICE IS RENDERED WHEN MARITIME PROPERTY IS IN PERIL.	TOWAGE SERVICE IS RENDERED WHEN MARITIME PROPERTY NOT IN PERIL.
3	SALVAGE SERVICE HAS TO BE SUCCESSFUL TO EARN AN AWARD EXCEPT IN CASE SERVICE IS RENDERED TO A VESSEL WHICH BY ITSELF OR BY CARGO ONBOARD THREATENS A DAMAGE TO THE ENVIRONMENT WHEN SPECIAL COMPENSATION IS PAYABLE.	TOWAGE SERVICE IS RENDERED BY A CONTRACT ON AN AGREES SUM.
4	IF SALVAGE IS SUCCESFUL AWARD IS GIVEN TO SALVOR WHICH IS HIGHER THAN TOWAGE.	ONLY THE STIPULATED SUM IS GIVEN.
5	A SALVOR HAS MARITIME LIEN ON THE PROPERTY FOR SALVAGE SERVICES RENDERED.	NO SUCH LIEN.

CONDITIONS FOR REWARD

1.      SALVAGE OPERATIONS WHICH HAVE HAD SUCCESSFUL RESULTS GIVE RIGHT TO A REWARD,

2.      EXCEPT AS OTHERWISE STATED, IF THE SALVAGE OPERATION IS UNSUCCESSFUL, NO PAYMENT IS DUE UNDER THIS CONVENTION,

CRITERIA FOR FIXING REWARD

1.      THE REWARD SHALL BE FIXED WITH A VIEW TO ENCOURAGE SALVAGE OPERATIONS, TAKING INTO ACCOUNT THE FOLLOWING:

1.      THE SALVED VALUE OF THE VESSEL AND OTHER PROPERTY,

2.      THE SKILLS AND EFFORTS OF SALVORS TO MINIMISE OR PREVENT DANGER TO ENVIRONMENT,

3.      THE MEASURE OF SUCCESS OBTAINED BY THE SALVOR,

4.      THE NATURE AND DEGREE OF THE DANGER,

5.      THE SKILLS AND EFFORTS OF THE SALVORS IN SALVING THE VESSEL, OR OTHER PROPERTY,

6.      THE TIME USED, EXPENSES AND LOSSES INCURRED BY THE SALVORS,

7.      THE RISKS OF LIABILITY AND OTHER RISKS RUN BY THE SALVORS OR THEIR EQUIPMENT,

8.      THE PROMPTNESS OF THE SERVICE RENDERED,

9.      THE AVAILABILITY AND USE OF VESSELS OR OTHER EQUIPMENTS INTENDED FOR SALVAGE OPERATIONS,

10.  THE STATE OF READINESS AND AVAILABILITY OF THE SALVORS EQUIPMENT AND THERE VALUE THEREOF.

2.      PAYMENT OF THE ABOVE REWARD SHALL BE MADE BY THE PARTIES HAVING THEIR INTEREST IN THE VESSEL OR OTHER PROPERTY IN PROPORTIONS OF THEIR SALVED VALUES,

3.      THE REWARDS SHALL NOT BE MORE THAN THE SALVED VALUE.

SPECIAL COMPENSATION

1.      IF THE SALVOR HAS CARRIES OUT SALVAGE OPERATIONS OF A VESSEL THAT BY HERSELF OR BY THE CARGO SHE IS CARRYING POSES A DANGER TO THE ENVIRONMENT, AND HAS FAILED TO EARN A SALVAGE AWARD EQUIVALENT TO THE EXPENSES INCURRED BY HIM PLUS ENHANCEMENTS, THEN HE IS ENTITLED FOR A SPECIAL COMPENSATION FROM THE OWNERS OF THAT VESSEL, EQUIVALENT TO HIS EXPENSES PLUS ENHANCEMENTS.

2.      SALVORS EXPENSES MEANS THE OUT-OF-POCKET EXPENSES INCURRED BY HIM PLUS A FAIR RATE FOR HIS EQUIPMENT AND PERSONNEL,

3.      IF THE SALVAGE SERVICES HAVE ACTUALLY PREVENTED OR MINIMISED THREAT TO ENVIRONMENT THEN SUCH A SPECIAL COMPENSATION CAN BE ENHANCED TO 30% OF THE EXPENSES OR IF THE TRIBUNAL DECIDES UPTO 100% OF THE EXPENSES,

4.      SPECIAL COMPENSATION SHALL BE PAID ONLY IF IT IS MORE THAN THE SALVAGE AWARD RECOVERABLE BY THE SALVORS,

5.      IF THE SALVORS HAVE BEEN NEGLIGENT AND HAVE FAILED TO PREVENT OR MINIMISE DAMAGE TO MARINE ENVIRONMENT THEN HE MAY BE DEPRIVED OF THE WHOLE OR PART OF SPECIAL COMPENSATION.

6.      FOR EXAMPLE: A SHIP CARRYING A CARGO OF SODIUM CYANIDE WAS TAKING IN WATER THREATENING DAMAGE TO ENVIRONMENT. THE SALVORS WERE ABLE TO DISCHARGE 40% OF THE CARGO AND THEN THE SHIP SUNK. SALVORS ARE ENTITLED TO SALVAGE AWARD.

THE SALVAGE AWARD ON THE BASIS OF SALVED VALUE = X USD

      THE SPECIAL COMPENSATION ON THE BASIS OF EXPENSES + ENHANCEMENTS = Y USD

IF X > Y, THEN THE SALVOR GETS ONLY X USD, AS HIS EXPENSES TAKEN CARE OF,

IF X < Y, THEN THE SALVOR GETS ONLY Y USD, (X USD PAID BY ALL INTERESTS AND Y UNITS

                                                                                                 PAID BY THE OWNERS P & I CLUB)

IF X = O, THEN THE SALVOR GETS ONLY Y USD, ALL PAID BY THE SHIP OWNERS P & I CLUB.

CONSIDERATION TO BE TAKEN INTO ACCOUNT BEFORE OFFERING TO TOW A DISABLED VESSEL

A VESSEL REQUIRING A TOW (A DISABLED, DRIFTING VESSEL) IS NOT NECESSARILY IN DISTRESS.

THE MASTER OF A VESSEL OFFERING A TOWAGE SERVICE SHOULD, THEREFORE, CAREFULLY CONSIDER THE FOLLOWING POINTS BEFORE CONTRACTING TO PERFORM A SALVAGE SERVICE:

1.      DOES THE CONTRACT OF CARRIAGE (AS CONTAINED IN THE CHARTER PARTY OR BILL OF LADING) GIVE THE VESSEL THE LIBERTY TO TOW?

2.      ARE THERE SUFFICIENT BUNKERS AND/OR FRESH WATER ON BOARD FOR THE TOW, AND WILL SUFFICIENT RESERVES BE MAINTAINED, THROUGHOUT AND AFTER THE TOW, TO MEET THE STIPULATIONS OF THE OWNER OR CHARTERERS?

3.      IS THERE A POSSIBILITY OF MISSING ANY CANCELLING DATE UNDER A CHARTER PARTY?

4.      DOES THE NATURE OF THE CARGO PERMIT A LENGTHENING OF THE VOYAGE? (THIS IS RELEVANT ESPECIALLY IN REEFERS.)

5.      IS THE VESSEL’S MACHINERY OF ADEQUATE POWER AND IN GOOD ENOUGH CONDITION FOR TOWING?

6.      IS THE VALUE OF THE VESSEL REQUESTING THE TOW, PLUS HER CARGO, OF SUFFICIENT VALUE TO MERIT A SALVAGE SERVICE?

7.      HAS AN AGREEMENT TO SALVAGE ON LLOYD’S OPEN FORM TERMS BEEN MADE?

8.      HAS A PORT OF DESTINATION OR PLACE OF SAFETY BEEN AGREED? (WHERE THE CASUALTY IS NEAR THE UK IT IS PREFERABLE TO TOW THE VESSEL HERE RATHER THAN TO A CONTINENTAL PORT.)

9.      HAVE THE OWNER OR MANAGER AND ANY TIME CHARTERER BEEN NOTIFIED, SO THAT ADDITIONAL HULL INSURANCE CAN BE ARRANGED IF NECESSARY?

10.  ARE PROPER RECORDS OF ALL EVENTS AND CIRCUMSTANCES TO DATE BEING KEPT?

LOF

1.      THE FIRST TEXT OF THE MODERN DAY LOF WAS ADOPTED IN 1892 AND SINCE IT HAS UNDERGONE 10 REVISIONS, THE CURRENT VERSION IS LOF2000.

2.      THE 1980 EDITION (LOF 80) MOVED AWAY FROM THE TRADITIONAL “NO CURE, NO PAY” PRINCIPLE BY PROVIDING A “SAFETYNET” FOR SALVORS WHO AGREED TO THE SALVAGE OF LOADED OIL TANKERS. THE “SAFETY NET” GUARANTEED THAT THE SALVOR’S EXPENSES WOULD BE PAID IN CASES WHERE THE VALUE OF THE SALVED PROPERTY PROVED INSUFFICIENT TO PROVIDE FOR A NORMAL SALVAGE REWARD. IN ADDITION, THE SALVOR COULD RECEIVE AN INCREMENT OF UP TO A MAXIMUM OF 15% OF HIS EXPENSES. THESE FEATURES WERE INTENDED AS INCENTIVES TO PERSUADE THE DECLINING NUMBER OF PROFESSIONAL SALVORS TO STAY IN THE SALVAGE BUSINESS.

3.      TILL LOF VERSION 80, THE PRINCIPLE USED WAS OF “NO-CURE, NO-PAY”. WHICH MEANS, THAT IF THERE WAS NO RECOVERY THERE WAS NO PAYMENT MADE AT ALL. THIS HAS CHANGED IN RECENT YEARS, IF A THREAT EXISTS TO THE ENVIRONMENT THE SALVORS CAN EXPECT A FAIR RETURN FOR HIS EFFORTS. THIS ENCOURAGES INSTANT ACTIONS TO SAVE SHIPS AND CARGOES THUS AVOIDING UNNECESSARY DELAYS ARISING FROM BARGAINING. THE PARTIES CAN GET ON THE JOB, WITH A SURITY THAT AT HE END OF THE DAY, THEY WILL BE PAID FOR THERE EFFORT.

4.      THE CRITERIA OF SPECIAL COMPENSATION WAS ALSO INTRODUCED WHICH INCLUDED ALL VESSELS IN COMPARISON TO ONLY TANKERS AS PER SAFETYNET.

5.      THE PROBLEM WITH SPECIAL COMPENSATION WAS THAT IT WAS RESTRICTED TO SALVAGE OPERATIONS IN “COASTAL WATERS AND AREAS ADJECENT TO”. IT PROVED TO BE A COST-EFFECTIVE SCHEME BUT THERE WERE PROBLEMS IN ASSESING THE AMOUNT DUE UNDER THIS.

6.      THEREFORE A SCOPIC CLAUSE (SPECIAL COMPENSATION P & I CLUB CLAUSE) HAS BEEN AGREED UPON BETWEEN SALVORS, P & I CLUBS, UNDERWRITERS AND OTHER PARTIES.

7.      UNDER THE SCOPIC THERE ARE NO GEOGRAPHICAL LIMITIONS OR LINKAGE TO THE EXISTENCE OF A POLLUTION THREAT.

8.      THE SCOPIC TOOK EFFECT IN AUGUST 1999 AND IS TO BE USED IN CONJUNCTION WITH LOF.

9.      EFFECTIVE 1^ST AUGUST 2000, THE LOF 2000 AND SCOPIC HAVE COME INTO EXISTENCE.

10.  LOF 2000 IS A SINGLE PAGE FORM COMPARED TO THE SIX PAGE LOF 95.

11.  IT IS A MORE USER FRIENDLY CONTRACT USING LANGUAGE WHICH IS CLEARLY EXPRESSED.

LOF 2000

1.      ONE CHANGE IN LOF 2000 IS A CLEAR STATEMENT THAT SALVOR IS ENTITLED TO ALL INFORMATION RELEVANT TO THE PERFORMANCE OF THE SALVAGE,

2.      IT ALLOWS MORE BALANCED ARRANGEMENTS FOR THE TERMINATION OF SALVAGE SERVICES,

3.      LOF 2000 IS DESIGNED TO CLARIFY THE CONDITIONS UNDER WHICH A CASUALTY IS IN A SAFE CONDITION TO BE REDELIVERED TO THE OWNERS. IT IS PROPOSED THAT THIS SHOULD BE DEFINED AS THE POINT AT WHICH SKILLED SALVAGE SERVICES ARE NO LONGER REQUIRED TO MAINTAIN A SAFE CONDITION. THIS CAN BE OF CRUCIAL IMPORTANCE IN THE CLOSING STAGES OF A SALVAGE OPERATION.

SCOPIC

1.      THE SCOPIC WAS FIRST INTRODUCED IN AUGUST 1999, AFTER A LOT OF EXTENSIVE NEGOTIATIONS BETWEEN SALVORS, P & I CLUBS AND OTHER INTERESTS.

2.      THIS CLAUSE CAN BE INCORPORATED IN ANY VERSION OF LOF, IF THE PARTIES SO DESIRE.

3.      IT IS NOT MANDATORY, A NEW VERSION OF SCOPIC KNOWN AS SCOPIC 2000 IS EFFECTIVE FROM AUGUST 2000. IT IS A TWO PAGE DOCUMENT WITH 15 PARAGRAPHS,

4.      IF BOTH PARTIES AGREE TO THE INCLUSION OF SCOPIC, IT CAN BE DONE SO BY STRIKING OFF YES/NO ON THE FIRST PAGE OF LOF.

5.      ONCE INCLUDED, IT IS UPTO THE SALVAGE CONTRACTOR TO INVOKE THE SCOPIC IN WRITING IN ORDER TO BENEFIT FROM IT.

6.      IF SCOPIC IS INVOKED, THE OWNER MUST PROVIDE WITHIN TWO WORKING DAYS A GUARANTEE OF USD 3 MILLION. THE P & I CLUB WILL PAY THIS AMOUNT ON BEHALF OF THE OWNERS.

7.      SCOPIC SOLVES THE PROBLEM ENCOUNTERED IN CALCULATING SPECIAL COMPENSATION CAUSED BY GEOGRAPHICAL LIMITS AND THREAT TO ENVIRONMENT, BY PROVIDING AN ALTERNATIVE METHOD OF CALCULATION OF SPECIAL COMPENSATION.

8.      SCOPIC CAN BE CLAIMED REGARDLESS OF SUCCESS, WHETHER ANY ENVIRONMENT THREAT EXISTS OR NOT, AND THE GEOGRAPHICAL LOCATION OF THE SALVAGE OPERATION.

9.      SCOPIC IS PAYABLE ONLY IF IT EXEEDS THE SALVAGE AWARD,

10.  SCOPIC REMUNERATIONS WILL BE CALCULATED IN ACCORDANCE WITH THE TARRIF RATES FOR TUGS AS PER THEIR HORSEPOWER, AND PERSONS AND EQUIPMENT USED AND LIKELY TO BE USED IN THE OPERATION.

11.  REMUNERATION UNDER SCOPIC ARE PAYABLE BY THE SHIPOWNER AND CANNOT BE DECLARED AS A GENERAL AVERAGE.

ADVANTAGES FOR SHIPOWNERS OF USING LOF 2000 WITH SCOPIC

1.      THERE SHOULD A LITTLE NEED FOR ARBITRATIONS ON SPECIAL COMPENSATION AWARDS. THE PROBLEM AREAS SUCH AS ENVIRONMENTAL THREAT, GEOGRAHICAL RESTRICTIONS, TUG RATES AND UPLIFTS HAVE ALL BEEN SETTLED BY SCOPIC,

2.      OWNERS / CLUBS HAVE MUCH MORE CONTROL, OR AT THE VERY LEAST, KNOWLEDGE OF WHAT IS HAPPENING DURING THE SALVAGE OPERATION,

3.      THE SHIPOWNERS RIGHT TO TERMINATE CLAUSE 9 UNDER SCOPIC IS CLEARER THAN CLAUSE 4 OF LOF,

4.      THE UPLIFT IS CAPPED AT 25 PERSENT.

DISADVANTAGES FOR SHIPOWNERS OF USING LOF 2000 WITH SCOPIC

1.      THE SALVORS MAY RECOVER MORE FOR THE AGREED TUG RATES THAN THEY WOULD UNDER THE NAGASAKI SPIRIT DECISION, BUT THIS IS NOT CERTAIN BECAUSE OF DIFFERENT UTILISATION FACTORS,

2.      SHIPOWNERS / CLUBS HAVE GIVEN UP THEIR DEFENCE FOR ENVIRONMENTAL THREAT AND GEOGRAPHICAL RESTRICTIONS.

ADVANTAGES FOR SALVORS OF USING LOF 2000 WITH SCOPIC

1.      IT IS NO LONGER NECESSARY FOR THE SALVOR TO PROVE THAT THERE WAS AN ENVIRONMENTAL THREAT OR TO OVERCOME ANY GEOGRAPHICAL RESTRICTIONS,

2.      SALVORS WILL BE PAID PROFITABLE TUG RATES,

3.      CASH FLOW PROBLEMS WILL BE EASED,

4.      SECURITY IS MORE CERTAIN.

DISADVANTAGES FOR SALVORS OF USING LOF 2000 WITH SCOPIC

1.      SALVORS CAN NEVER RECOVER MORE THAN A 25% UPLIFT,

2.      THERE IS A GREATER RISK THAT THE OWNER TERMINATES THE CONTRACT.

GENERAL AVERAGE

A GENERAL AVERAGE SITUATION ARISES WHEN THERE IS AN EXTRAORDINARY SACRIFICE OR EXPENDITURE RESULTING FROM AN INTENTIONAL ACT WHICH IS REASONABLY MADE OR INCURRED FOR COMMON SAFETY OF THE SHIP, CARGO AND FREIGHT, IN SITATIONS OD PERIL, FOR THE SAFETY OF MARITIME ADVENTURE.

EXAMPLES OF EXTRAORDINARY SACRIFICE

1.      BEACHING THE VESSEL IN ORDER TO PREVENT A TOTAL LOSS BY SINKING,

2.      FLOODING OF ENGINE ROOM OR FIRE FIGHTING OPERATIONS IN THE ENGINE ROOM,

3.      WHEN THE SHIP’S ENGINES ARE USED TO REFLOAT THE SHIP, THE RESULTING SACRIFICIAL DAMAGE TO THE MAIN ENGINES AND AUXILLARIES.

EXAMPLE OF EXTRAORDINARY EXPENDITURE

IN CASE A SHIP CARRYING CARGO IS DISABLED DUE TO MAIN ENGINE FAILURE WHICH CANNOT BE REPAIRED, THEN THE ENGAGEMENT OF TUG TO TOW THE VESSEL TO A PORT OF REFUGE IS AN EXTRAORDINARY EXPENDITURE TO THE EXTENT THAT THERE ARE NO SAVINGS IN FUEL AND OTHER COSTS. THE EXTRAORDINARY EXPENDITURE OF ENTERING THE PORT OF REFUGE (PROVIDED THAT IT WAS NOT A PORT OF CALL OR PORT OF DESTINATION) ALSO COMES UNDER GENERAL AVERAGE.

ESSENTIAL INGREDIENTS OF THE GENERAL AVERAGE ACT

1.      THERE ARE MORE THAN ONE INTEREST IN THE MARINE ADVENTURE, i.e. SHIP, CARGO, AND/OR FREIGHT (IF AT RISK),

2.      THE SACRIFICE AND / OR EXPENDITURE SHOULD BE MADE INTENTIONALLY,

3.      THE SACRIFICE AND / OR EXPENDITURE SHOULD BE MADE REASONABLY,

4.      THE SACRIFICE AND / OR EXPENDITURE SHOULD BE MADE IN A SITUATION OF PERIL, WHICH THREATENS THE COMMON ADVENTURE, THAT IS ALL THE INTERESTS,

5.      THE SACRIFICE AND / OR EXPENDITURE SHOULD BE MADE FOR THE COMMON SAFETY.

PARTICULAR AVERAGE

A PARTICULAR AVERAGE IS A PARTIAL LOSS OF THE SUBJECT-MATTER INSURED, CAUSED BY A PERIL AGAINST, AND WHICH IS NOT A GENERAL AVERAGE LOSS

EXAMPLE: DAMAGE TO HULL DUE TO STORM, CARGO DAMAGE DUE TO PERILS, HULL DAMAGE DUE TO RUNNING AGROUND OF THE VESSEL.

PARTICULAR CHARGE

EXPENSES INCURRED BY OR ON BEHALF OF THE ASSURED FOR THE SAFETY OR PRESERVATION OF THE SUBJECT-MATTER INSURED, OTHER THAN GENERAL AVERAGE AND SALVAGE CHARGES, ARE CALLED PARTICULAR CHARGES. PARTICULAR CHARGES ARE NOT INCLUDED IN PARTICULAR AVERAGE.

YORK-ANTWERP RULES

THE YORK-ANTWERP RULES:

1.      ARE A SET OF INTERNATIONALLY RECOGNISED RULES, DRAWN UP BY A NUMBER OF MARITIME COUNTRIES TO ENABLE THE ASSESSMENT OF EACH PARTY’S GENERAL AVERAGE CONTRIBUTION FOLLOWING AN INCIDENT IN WHICH GENERAL AVERAGE WAS DECLARED.

2.      ARE (UNLIKE THE HAGUE-VISBY RULES) NOT INCORPORATED INTO NATIONAL LAW BUT ARE VOLUNTARILY AND MUTUALLY ACCEPTED BY SHIPPERS, SHIPOWNERS AND INSURERS.

3.      ARE GENERALLY INCORPORATED INTO A CONTRACT OF CARRIAGE IN A GENERAL AVERAGE CLAUSE. IF THE PARTIES HAVE NOT AGREED TO APPLY THE YORK-ANTWERP RULES, COMMON LAW - USUALLY THAT OF THE COUNTRY WHERE THE VOYAGE IS TERMINATED FOLLOWING THE GENERAL AVERAGE ACT - MAY BE APPLIED TO THE GENERAL AVERAGE ADJUSTMENT. THERE IS A RISK IN SUCH CASES OF WIDE VARIATIONS FROM ONE COUNTRY TO ANOTHER IN THE METHOD OF ADJUSTMENT OF GENERAL AVERAGE).

4.      CONSIST OF 7 LETTERED RULES (A TO G) STATING THE GENERAL PRINCIPLES OF GENERAL AVERAGE, PLUS 22 NUMBERED RULES (I TO XXII) DEALING WITH SPECIFIC MATTERS.

5.      PROVIDE A DEFINITION OF A GENERAL AVERAGE ACT (IN RULE A) AS FOLLOWS: “THERE IS A GENERAL AVERAGE ACT WHEN, AND ONLY WHEN, ANY EXTRAORDINARY SACRIFICE OR EXPENDITURE IS INTENTIONALLY AND REASONABLY MADE OR INCURRED FOR THE COMMON SAFETY FOR THE PURPOSE OF PRESERVING FROM PERIL THE PROPERTY INVOLVED IN A COMMON MARITIME ADVENTURE”.

EXAMPLES OF GENERAL AVERAGE ACTS ALLOWED UNDER YORK-ANTWERP RULES

1.      TAKING A TOW TO A PORT OF REFUGE AFTER A MAJOR MACHINERY FAILURE,

2.      JETTISONING OR DISCHARGING CARGO TO AID REFLOATING AFTER STRANDING,

3.      EXTINGUISHING A FIRE,

4.      WETTING PREVIOUSLY UNDAMAGED CARGO WHILE EXTINGUISHING A FIRE. (DAMAGE CAUSED BY THE FIRE WOULD BE PARTICULAR AVERAGE, WHILE DAMAGE BY WATER WOULD BE GENERAL AVERAGE.),

5.      BEACHING A SHIP (“VOLUNTARY STRANDING”) TO AVOID FOUNDERING,

6.      PUTTING INTO A PORT OF REFUGE DURING A LOADED VOYAGE DUE TO FIRE, SHIFTING OF CARGO, COLLISION, GROUNDING, LEAKAGE, ETC.

7.      PUTTING INTO A PORT OF REFUGE TO EFFECT ESSENTIAL HULL OR MACHINERY REPAIRS.

EXAMPLES OF GENERAL AVERAGE SACRIFICES ALLOWED UNDER YORK-ANTWERP RULES

1.      DAMAGING ENGINE, PROPELLER OR HULL IN REFLOATING OPERATIONS,

2.      JETTISON OF CARGO FROM UNDERDECK,

3.      JETTISON OF CARGO CARRIED ON DECK BY A RECOGNISED CUSTOM OF THE TRADE,

4.      SLIPPING AN ANCHOR AND CABLE TO AVOID A COLLISION.

EXAMPLES OF GENERAL AVERAGE EXPENDITURE ALLOWED UNDER YORK-ANTWERP

RULES

1.      COST OF HIRING A TUG TO REFLOAT A STRANDED SHIP WITH CARGO ONBOARD,

2.      COST OF DISCHARGING CARGO IN ORDER TO REFLOAT A STRANDED SHIP OR TO CARRY OUT REPAIRS AT A PORT OF REFUGE,

3.      SALVAGE COSTS,

4.      AGENCY FEES AT A PORT OF REFUGE,

5.      SURVEYORS’ FEES,

6.      WAREHOUSING CHARGES,

7.      PORT CHARGES,

8.      MASTER’S AND CREW’S WAGES WHILE A SHIP IS BEING REPAIRED,

9.      AVERAGE ADJUSTER’S FEE.

RULE 1 – JETTISONING OF CARGO

IF THE CARGO IS CARRIED WITH THE RECOGNISED CUSTOMS OF THE TRADE AND THEN JETTISONED, IT SHALL BE MADE GOOD AS GENERAL AVERAGE.

RULE XI - WAGES AND MAINTENANCE OF CREW AND OTHER EXPENSES BEARING UP FOR AND IN A PORT OF REFUGE ETC.

1.       IF THE VESSEL ENTER A PLACE OF REFUGE OR RETURNS TO HER PORT OF LOADING AND SUCH AN ACTION ID LEGAL AS PER THESE RULES, THEN THE WAGES AND MAINTAINANCCE OF THE MASTER, OFFICERS AND CREW REASONABLY INCURRED AND CONSUMPTION OF FUEL AND STORES CONSUMED FOR THE PROLONGED VOYAGE SHALL BE CONSIDERED AS GENERAL AVERAGE,

2.       IF THE VESSEL HAS BEEN DETAINED IN SOME PLACE OF ACCIDENT, SACRIFICE AND DUE TO THAT INCIDENT / EXTRAORDINARY CIRCUMSTANCES THE VESSEL HAS TO UNDERGO REPAIRS TO LIFT THE DETENTION, THEN FOR THE NUMBER OF DAYS SHE IS DETAINED THE WAGES AND MAINTAINANCE OF THE MASTER, OFFICERS AND CREW REASONABLY INCURRED AND CONSUMPTION OF FUEL AND STORES CONSUMED FOR THE PROLONGED VOYAGE SHALL BE CONSIDERED AS GENERAL AVERAGE,

3.       PORT CHARGES INCURRED DURING THE EXTRA PERIOD OF DETENTION SHALL BE ADMITTED AS GENERAL AVERAGE,

4.       WHEN A SHIP IS CONDEMNED OR DOES NOT PROCEED FOR HER ORIGINAL VOYAGE, THEN DETAINED THE WAGES AND MAINTAINANCE OF THE MASTER, OFFICERS AND CREW REASONABLY INCURRED AND CONSUMPTION OF FUEL AND STORES CONSUMED AND PORT CHARGES SHALL BE ADMITTED AS GENERAL AVERAGE ONLY UPTO THE DATE OF CONDEMNATION OR OF THE ABANDONMENT OF THE VOYAGE OR UPTO THE DATE OF COMPLETION OF DISCHARGE OF CARGO IF THE CONDEMNATION OR ABANDONMENT TAKES PLACE BEFORE THAT DATE.

RULE XII - DAMAGE TO CARGO IN DISCHARGING ETC.

DAMAGE TO CARGO, FUEL OR STORES SUSTAINED IN CONSEQUENCE OF THEIR HANDLING, DISCHARGING, STORING, RELOADING AND STOWING SHALL BE MADE GOOD AS GENERAL AVERAGE, WHEN AND ONLY WHEN THE COST OF THOSE MEASURES RESPECTIVELY IS ADMITTED AS GENERAL AVERAGE.